Morning journal and courier., 1887-03-24
THE LITTLE DERBY ROAD.

THE LITTLE DERBY ROAD.
What the stockholders Did at Their
Meeting Yesterday-A Lively Meeting
Talkfng For or Against the PROBE
The M Getting Votes to Sell as For The
Best Interests Of stockholders and
The City.
At the special meeting of the stockholders
of the New Haven and Derby road held in
Good Samaritans' hall yesterday, after gen.
eral discussion of the question, a resolution
was adopted fayoring the sale of the road.
About one hundred stockholders were pres
emit. The resolution was as follows:
Resolved, That it is the sense of this meeting
that it is for the interest t OF the city of New aatea
city should part with its interest in the road pro
city and
the road will be extended 10 further railroad CON
nestions westward and with proper security to the
stockholders other than the city.
Joel A. Sperry, president of the road, pre-
sided and announced the business before the
meeting. Charles Atwater oficiated as
secretary.
G. S. Bushnell, president of the Housatonic
Valley railroad company, first addressed the
meeting: "It seems to me that little expla-
nation is in order. I was informed this
morning by Mr.. Yale of Yale & Bryan, as
honest man as there is in the
city, that the Housatonic Valley rail
road company has got little scheme
to buy the city's interest in the Derby, and
then freeze out the original stockholders by
selling out. I told Mr.. Yale that there was
no such scheme; that nothing was further
from the thoughts of the men associated with
me. We propose to put the stock in trust
SO that the city can lose nothing. 1t is to be
put in trust SO that the new company cannot
get it until the proposed extension of the
Derby to the New England is completed. The
result of the discussion about selling out has
been that the stock has gone up from 16 to
about 40. We propose to arrange it SO that
the stock will be worth much more than it is
now. If you kill this project you will deeply
regret It,"
George w. Shelton, of Birmingham, ia
vored the sale. The value of the road would
be doubled by extending it to the New Eng
land and nay property in Birmingham would
New Haven by the Derby would be increased
in geometrical ratio if the extension is
made. If we can bring to this city the bust
ness of the New England road and the West,
the value to the city would be very great.
The practical question is not whether the
city can get the greatest amount now for the
road, but how can it best secure its perma-
nent interests.
Mr.. Bushnell then made q motion that it
is the sense of the meeting that the city
should sell its interests in the Derby at the
best price it can get if it can secure the ex-
tension.
Mr.. NJ Frank Tyler moved to amend and
offered the resolution above given.
President Dawson, of the Water company,
said he would favor the motion. 'The first
object is to secure the extension. The price
the city shall get is mere bagatelle. want
all the guarantees possible. I want the city
secured beyond shadow of doubt"
James D. Dewell seconded Mr.. Tyler's mo-
ton and said the city cannot afford to miss
connecting with the New England, and said
in his opinion the proposed sale and extern
sion would greatly add to New Ravens pros
perity and population. A competing line
| like this was imperatively needed.
Ex-Judge Lynde Harrison moved to amend
| the resolution of Mr.. Tyler by striking out
| the words lat price that may seem fair to
/ the city authorities" and substituting the
| words sat the market value" He thought
i that price that might seem fair to the city
| authorities might be unfair to the city. Mr..
| Harrison quoted figures showing that the
| city's interest in the Derby road was worth
| $475 600, and the total value of the Derby
road was over 81 ,000, 900. He said that the
| city holds trust mortgage deed of the road
| and that it can foreclose its mortgage. Mr..
| Harrison showed how the purchaser of the
L HSo5CSSOo
| of this same power to foreclose. The total
| amount the road owes the city, Mr.. Harrison
stated, was 1926, 900. The road would owe
| the purchaser of the city's interest the same
| amount. Mr.. Harrison then brought up an
| array of figures to show that the value of the
combined assets of the road was about a mil
| lion dollars. The city was asked to sell Sc
curities worth $475. 900 for $175, 900.
| Attorney S. Fl. Wagner made light of
Judge Harrison's remarks and characterized
| his million dollar valuation of the road IS
preposterous. Mr.. Wagner went on to show
| that the Derby railroad stock had no practi-
| cal value and that Judge Harrisen's estimate
| was way off.
Attorney Tyler also briskly attacked Judge
| Harrison's estimates as idle dreaming.
Mr.. Harrison, replying to a remark of Mr..
| Wagner's, said it was not true that he was
representing the New York road. He was q
| stakeholder in the Derby by reason of having
| purchased some Derby road stock lately from
an estate. The city should sell to the high
/ est bidder. He endorsed the proposed ex-
| tension as needed, but which route is best he
could not say. The thing for the city to do
is to get the best price it can and get the ex-
| tension.
| Mr.. Bushnell said the Standard Oil compa-
/ ny had nothing to do with the Housatonic
| Valley railroad The members of the
| Housatonic Valley company are nearly all
| New Haven men and men who can be relied
upon as fully and variously identified with
| New Ravens interests. In answer to Mr..
Harrison he said it would be guaranteed
| that the Derby stockholders would not be
] frozen out.
/ xMayor Lewis spoke next. His speech
was strongly in favor of the sale. 1t was of
| great Importance that New Haven should get
| this proposed connection. He spoke power
| fully of New Ravens folly in letting go its
| chance to have the Naugatuck roads termi-
| nus at New Haven and of the necessity of not
| making another such blunder.
| President Sperry, of the Derby, opposed
| the sale. He suggested that the original
| stockholders would be likely to be frozen out
| if the sale is made, and thought that the
| road was doing we'll enough now. Major
| and Assessor William Hull and N. w. Mer-
| win opposed the motion of Mr.. Tyler and
| favored Mr.. Harrison's amendment.
Henry T. Blake made further amend
ment to Mr. Harrison's amendment to make
| it read that the sale should not be made un
| less at fair market price after full oppor-
/ tunity for competitive offers, and also that
| instead of the word 'pr;ce" the word
/ t!terms' be used. Mr.. Harrison accepted the
said: ST object to allowing this road to pass
| into the hands of the Consolidated road, for
| if the Consolidated obtained possession of
| the Derby road it would have control over
all the roads leading into this city"
Mr.. Harrison then accepted an amendment
| ssthat no sale be made te the New Haven or
| Naugatuck Valley railroads." This last was
made to satisfy those who feared the Consol-
| idated road might buy out the Derby and
thus prevent competition.
AS it was dining time many withdrew
At 1 o'clock J. T. Whittlesey made a motion
to adjourn until II O'Clock this morning. IT
was lost
attempt to get stock vote failed. Mr.
Tyler than withdrew his request for stock
vote. By vote taken, Mr.. Harrison'f
amended amendment was lost and the origi-
nal resolution was adopted, only one person
voting against it.